Localism Act “The new rights and powers coming into force will begin to put communities firmly back in control of their own destiny” Communities Minister, Andrew Stunell 16 th Jan 2012 “The new rights and powers coming into force will begin to put communities firmly back in control of their own destiny” Communities Minister, Andrew Stunell 16 th Jan 2012

Building the Big Society through the Localism Act Decentralisation – giving away power to individuals, professionals and communities Big Society - people, neighbourhoods and communities have more power and responsibility and use it to create better services and outcomes Right to Bid Right to Challenge Right to Build & neighbourhood planning

Bid

3 Community Rights Community Right to Bid Community Right to Challenge Community Right to Build

Community Right To Build They may wish to build new homes, businesses, shops, playgrounds or meeting halls. The Act gives groups of local people the power to deliver the development that their local community want. Photo by splendor solis ©

Steps in Community Right to Build 1. Members of a community will come together and decide that they would like to take forward development in their community - be it homes, shops, businesses or facilities. 2. The community will need to set themselves up as a corporate entity. 3. Once established community organisations will need to develop their projects. This will include –identifying local needs, –discussing opportunities with land owners, –engaging designers –identifying suitable project finance. –have some early discussions with developers and local authorities to identify development opportunities and obstacles to delivery. 4. Once a project proposal has been finalised and community buy-in has been secured and assuming that there are no other legal bars to the project, the community organisation will need to hold a referendum. We anticipate that the Local Authority will be able to do this on the community organisation's behalf. 5. Following a successful referendum we anticipate that the community organisation would submit their proposal to the local authority for checks for conformity with set criteria (to be decided!)

Q&A Q: What kind of property can a community develop under the new right? A: The type of property to be built will be for the community to decide. Communities might wish to build a mixture of market housing for sale, affordable housing for rent, sheltered housing for elderly local residents, or low cost starter homes for young local families struggling to get on the housing ladder. Or they might wish to build a new play ground for children. Q: Can communities take forward other types of development? A. As well as housing, the Community Right to Build will allow the community to provide other services for the benefit of local people. For instance, they might offer long-term low rent commercial accommodation for a village shop on a serviced tenancy, a community hall, or a sports facility. Q: What are the sources of funding? A: We do not wish to be prescriptive as to how the Community Right to Build business model should be structured or funded. There are a broad range of financial resources available to developers and community groups and a community organisation should have the flexibility to source the finance most appropriate to achieving their objectives. Q: Where will communities get the land? A: Communities have the opportunity to find their own sites that are most suitable for their needs. Q: How will communities buy the land? A: The community will need to negotiate with the landowner and reach an agreement. Q: How much will it cost to carry out the Community Right to Build? A: This will depend upon the nature and scale of the development and what it wants to achieve for the community. This flexibility means that local people could set up a community organisation appropriate in scale and cost to the local circumstances.

3 Community Rights Community Right to Bid Community Right to Challenge Community Right to Build

Community Right To Bid The Community Right to Bid (Assets of Community Value) was originally referred to as the ‘community right to buy' in the Localism Bill. This allows communities to nominate buildings and land that they consider to be of value to the community, to be included on a local authority maintained list. If any of the assets on the register are put up for sale, the community is given a window of opportunity to express an interest in purchasing the asset, and another window of opportunity to bid.

Bid Community Right To Bid

Definition of ‘Asset of Community Value’ “Asset of Community Value” is building or other land which: – Furthers social wellbeing and interests* of local community – as it’s current use, or in recent past – main use, not ancillary – realistic to think will continue to further social wellbeing and interests; and – not an excluded listing *includes cultural, recreational and sporting interests Exclusions from listing include: –Residential premises and associated land (except where the living accommodation is integral to the use of the asset) and caravan sites –Operational land

List of Assets of Community Value List of land nominated by unsuccessful community nominations Identify Land or Building of Community Value Community Organisation Neighbourhood Planning Forum Parish Council Local Authority decides to list asset Local Authority asks owner for comment No objection from owner Owners objection unsuccessful Owner’s objection successful Local Authority decides not to list asset Added to list of Community Value Local Authority publicises and maintains list Right to Bid – List The Asset

Owner decides to sell listed asset and informs Local Authority LA informs nominator and publicises to community Community groups express interest in bidding Community groups prepare business plan and finance Owner can sell to whoever they choose at end of full window of opportunity Window starts when owner tells LA of intention to sell Interim window of opportunity ends 6 weeks Full window of opportunity ends 6 months No community groups express interest Owner free to sell asset after interim window of opportunity Owner can sell to community group Right to Bid – Bid for Asset

Assets of Community Value The Asset of Community Value provisions do NOT… –Restrict who the owner of a listed asset sells to –Restrict the price the owner sells at –Restrict what the owner can do with their property once listed

The Asset Nomination and Listing Process Who can nominate? Voluntary and community organisations with a local connection Parish Councils Procedure for Listing Local authorities are required to publish and maintain a list of assets of community value and a list of unsuccessful nominations and to notify the owner(s), occupier(s) and nominator(s) of changes to the lists. Review of a Listing Decision and Right of Appeal Owner will have a right to request an internal review of a local authority’s decision to list an asset and a further right of appeal if dissatisfied with the outcome of the review.

Exempt relevant disposals Disposals that are exempt from triggering the window of opportunity: Transfers made as a gift Transfers between family members Transfers due to inheritance Transfers between trustees Transfers of ‘going concern’ businesses Transfers where the listed asset forms part of a larger estate Others to be defined in regulations, including: Transfers made between connected companies Transfers made by a lender or through insolvency Transfers for provision of ongoing public service delivery

Issues for regulations (still to be sorted!) Community Nominations and local connection “voluntary and community body” includes unconstituted groups and Neighbourhood Forums. “Local connection” – group’s activities wholly or partly concerned with local authority area or the neighbouring authority area. Compensation Owners entitled to claim compensation for loss or expense as result of complying with procedures of scheme Enforcement All listed assets to be included on the local land charges register exploring simple and strong approach to non-compliance, where the fault of the owner, for example, by making non compliant sale “void”. Support Programme We are developing our plans… want to build on support and sources of advice which already exist.

Example Hebden Bridge Town Hall One of first communities to take control of its Town Hall! Community led campaign LA transferred building on 125 yr lease Underused building becomes community hub

3 Community Rights Community Right to Bid Community Right to Challenge Community Right to Build

Community Right To Challenge The Community Right to Challenge allows voluntary and community bodies, parish councils or two or more members of council staff to express an interest in running a local authority run service. Where the expression of interest is accepted, the local authority must run a competitive procurement exercise for the contract to deliver that service.

Right To Challenge

How will the Right to Challenge work? Relevant services subject to challenge Voluntary or Community Group Charity Parish Council Relevant Authority Staff Expression of Interest Relevant Authority Accept Accept with modification Reject Relevant authority undertakes procurement exercise in line with legal requirements No procurement triggered; relevant authority publishes reason for rejection 12 3 If authorities opt to set periods during which they will consider expressions of interest, how long these should be Time for authorities to reach a decision on expressions of interest Time between accepting expression(s) of interest and commencing a procurement exercise

What Will Communities Need to have in Place for any of the “ Community Rights”? A Legal Structure – Minimum will be a legally constituted body, with a bank account. E.g. Not- for-profit company, social enterprise (community interest company), Industrial and provident society (IPS) or the new Charitable Incorporated Organisation (if it happens) Governance – Board of Directors Roles and Responsibilities Evidence base – referenda, questionnaires, local action plans, community data, user needs Business Plan – details what service/customers, how much it costs, income, expenditure Management – who does what. Structures, job descriptions Internal Systems – money, people, service, quality Risk - need to have a Risk Management Plan Relevant Policies e.g. Child Protection, Vulnerable Adults, H&S, Employment, Equal Opportunity, Environmental Insurances and legal requirements. Place and space for administration and work

Sources of Support Rother Voluntary Action Action in Rural Sussex Rother Association of Local Councils Rother District Council East Sussex County Council Thank You ocalismplainenglishupdate